HARBOR GATEWAY SHOPS
TORRANCE, CA
$6,149,800
AT A GLANCE
Faris Lee represented South Bay-based buyer in purchase, sourced from Faris Lee database
Multi-tenant out-parcel food shops to Super Walmart
All cash transaction in which Faris Lee coordinated and reviewed all due diligence
CHALLENGES
18% vacancy though income being capitalized in the offering memorandum was assuming 100% occupancy
Seller not providing allowances for tenant improvements and leasing commissions for vacant suite
Buyer had no prior experience in owning multi-tenant retail centers
MARKETING STRATEGY
Sourced all properties in buyer’s 1031 ID list, thereby enabling Faris Lee to provide the highest level of advisory to buyer
Controlled and coordinated all due diligence to ensure buyer obtains the most complete property review
Worked with area leasing expert to procure tenants for vacancy while in escrow
RESULTS
During escrow, procured tenant for last remaining vacant unit resulting in a cap rate 35 basis points above sale comps for similar centers in the South Bay area
Smooth ownership transition for inexperienced investor as existing property manager and vendors were kept in place
Sourced all cash, 1031 exchange investor from South Bay